USE OF ISDA DEFINITIONS: OVERVIEW OF THE 2000 ISDA DEFINITIONS August 6 , 2002

1. USE OF ISDA DEFINITIONS:OVERVIEW OF THE 2000 ISDA DEFINITIONSAugust 6, 2002 Emilio Jiménez Vice President and Assistant General Counsel J PMorgan Chase Bank

2. ISDA Agreement Structure Credit Support Document(s) 1992 Master Agreement (Multicurrency - Cross Border or Local Currency - Single Jurisdiction) • Contains basic legal, credit and mechanical terms • Incorporates Confirmations • Schedule used to make elections, changes and additions to standard provisions Definitions • Confirmations • Incorporate Definitions • Specify economic terms of each Transaction • Include Transaction-specific modifications 2

3. ISDA Definitions Booklets in Current Use • 1992 ISDA Municipal Counterparty Definitions • 1993 Commodity Derivatives Definitions • 1996 Equity Derivatives Definitions • 1997 Government Bond Option Definitions • 1997 Bullion Definitions • 1998 FX and Currency Option Definitions • 1998 Euro Definitions • 1999 Credit Derivatives Definition • 2000 ISDA Definitions • Annex • NCU Supplement

4. General Aims of ISDA Definitions • Codify market practices and conventions • Implementation of standard terminology • Promote operational efficiency and ease of execution • Ease of comparison • Avoid “battle of the forms”

5. Background and purpose of 2000 ISDA Definitions • Purpose: Provide framework for documentation of interest rate and currency derivative transactions • Consolidates 1991 ISDA Definitions, 1998 ISDA Supplement, portions of 1998 Euro Definitions • No longer includes terms for products defined in other definition booklets

6. 2000 ISDA Definitions Structure • 2000 ISDA Definitions booklet • Exhibits (sample confirmations) • Annex to the 2000 ISDA Definitions • Annex forms part of 2000 ISDA Definitions

7. Interest rate swaps Basis swaps Interest rate caps Interest rate floors Interest rate collars Currency Swaps Cross-Currency Rate Swaps Swaptions Forward Rate Agreements Customized Products 2000 ISDA DefinitionsProduct Coverage

8. 2000 ISDA DefinitionsDefinitions Coverage • Art. 1: General Definitions • Art. 2: Parties • Art. 3: Terms and Dates • Art. 4: Payments Definitions • Art. 5: Fixed Amounts • Art. 6: Floating Amounts • Art. 7: Calculations of CertainFloating Rate Options • Art. 8: Rounding; Interpolation Discounting • Art. 9: Payments • Arts. 10 - 14: Options: Definitions and Provisions; Exercise and Settlement of Swaptions • Arts. 15 and 16: Optional and Mandatory Early Termination • Art. 17: Cash Settlement

9. Sample Interest Rate Swap SWAP A Fixed 6%, Q, A/360 B Floating-Libor, Q, A/360 n/a: $100.00 2year

10. Documentation of Interest Rate Swap Pursuant to the 2000 ISDA Definitions

11. Documentation of Interest Rate Swap Pursuant to the 2000 ISDA Definitions (Cont’d)